Minnesota vs Hawaii Taxes
Compare the total tax burden between Minnesota (5.35% – 9.85%) and Hawaii (1.4% – 11%). Enter your income to see which state saves you more.
| Tax Component | Minnesota | Hawaii |
|---|---|---|
| Federal Tax | $13,170 | $13,170 |
| State Tax | $5,277 | $5,796 |
| FICA | $7,650 | $7,650 |
| Total Tax | $26,097 | $26,616 |
| Take-Home | $73,903 | $73,384 |
| Effective Rate | 26.10% | 26.62% |
| Annual Difference | $520 less | $520 more |
The $520 difference is primarily because Hawaii has a progressive income tax with rates up to 11.0%, while Minnesota has a progressive income tax with rates up to 9.8%. At your income level, Hawaii's marginal rate is 7.6% vs Minnesota's 6.8%.
Why the difference
You'd pay $520/year ($43/month) more in Hawaii vs Minnesota.
Tax structure
Minnesota uses progressive brackets up to 9.8%, while Hawaii uses progressive brackets up to 11.0%.
Effective rate at your income
At $100,000, Minnesota's effective state rate is 5.3% vs 5.8% in Hawaii — a 0.5 percentage point gap.
Tip: In a progressive-bracket state, pre-tax 401(k) and HSA contributions reduce your state tax bill along with federal tax. If you are near a bracket boundary, an additional contribution can drop you into a lower state bracket.
Tip: In a progressive-bracket state, pre-tax 401(k) and HSA contributions reduce your state tax bill along with federal tax. If you are near a bracket boundary, an additional contribution can drop you into a lower state bracket.
Minnesota Total Tax
$26,09726.10% effective rate
Hawaii Total Tax
$26,61626.62% effective rate
Annual Savings
$520by living in Minnesota
Tax at Different Income Levels
| Income | Minnesota Total Tax | Hawaii Total Tax | Annual Savings |
|---|---|---|---|
| $75,000 | $16,984 | $17,304 | +$320 |
| $100,000 | $26,097 | $26,616 | +$520 |
| $150,000 | $45,151 | $45,853 | +$702 |
| $200,000 | $63,940 | $64,722 | +$782 |
Based on single filer, standard deduction, 2026 tax year. Includes federal income tax, state income tax, and FICA.
Why the difference
You'd pay $520/year ($43/month) more in Hawaii vs Minnesota.
Tax structure
Minnesota uses progressive brackets up to 9.8%, while Hawaii uses progressive brackets up to 11.0%.
Effective rate at your income
At $100,000, Minnesota's effective state rate is 5.3% vs 5.8% in Hawaii — a 0.5 percentage point gap.
Tip: In a progressive-bracket state, pre-tax 401(k) and HSA contributions reduce your state tax bill along with federal tax. If you are near a bracket boundary, an additional contribution can drop you into a lower state bracket.
Tip: In a progressive-bracket state, pre-tax 401(k) and HSA contributions reduce your state tax bill along with federal tax. If you are near a bracket boundary, an additional contribution can drop you into a lower state bracket.
Understanding Each State
Minnesota
This state uses a progressive income tax system with multiple brackets, similar to the federal system. Only the income within each bracket is taxed at that rate, so your effective state rate is lower than the top bracket. Tax planning strategies include maximizing pre-tax retirement contributions to reduce state-taxable income.
Tip: In a progressive-bracket state, pre-tax 401(k) and HSA contributions reduce your state tax bill along with federal tax. If you are near a bracket boundary, an additional contribution can drop you into a lower state bracket.
Hawaii
This state uses a progressive income tax system with multiple brackets, similar to the federal system. Only the income within each bracket is taxed at that rate, so your effective state rate is lower than the top bracket. Tax planning strategies include maximizing pre-tax retirement contributions to reduce state-taxable income.
Tip: In a progressive-bracket state, pre-tax 401(k) and HSA contributions reduce your state tax bill along with federal tax. If you are near a bracket boundary, an additional contribution can drop you into a lower state bracket.
Key Comparison Points
Income tax structure: Minnesota has a progressive income tax (5.35% – 9.85%), while Hawaii has a progressive income tax (1.4% – 11%).
Beyond income tax: State tax comparisons should also consider property tax rates, sales tax, and cost of living. A state with no income tax may have higher property or sales taxes that offset the savings.
SALT deduction cap: Under OBBBA, the 2026 federal SALT cap is $40,400, phasing out above $505,000 MAGI toward a $10,000 floor. This limits the federal tax benefit of living in a high-tax state, so the gross state tax difference remains close to the net difference for most earners — especially high earners inside the phaseout.
Frequently asked questions
Is it cheaper to live in Minnesota or Hawaii?
Based on income tax alone, Minnesota has a lower tax burden. At $100K income, you'd save $520 annually in Minnesota compared to Hawaii. However, total cost of living also depends on property taxes, sales taxes, and housing costs.
How much would I save moving from Hawaii to Minnesota?
A single filer earning $100,000 would save approximately $520 per year in total taxes by living in Minnesota instead of Hawaii. At $150,000 income, the savings change to $702 per year.
What is the income tax rate in Minnesota?
Minnesota has a progressive income tax with rates of 5.35% – 9.85%.
What is the income tax rate in Hawaii?
Hawaii has a progressive income tax with rates of 1.4% – 11%.